The Office of Trade Policy and Strategy (OTPS) has pointed out opportunities for Thai health tourism businesses to penetrate the market in Boao City, Hainan Province, in response to the Hainan Free Trade Port policy aimed at liberalizing and facilitating trade and investment in the tourism industry, high-tech industries, and modern service industries, particularly in the health and medical sectors.

 

            Mr. Phusit Rattanakul Serirangrit, Director of the Office of Trade Policy and Strategy (OTPS) revealed that the OTPS has studied economic opportunities for Thailand in Hainan Province to find new trade opportunities for Thai entrepreneurs, building on the ongoing trade from the signing of a memorandum of understanding on Thai-Hainan trade cooperation, which is the first Mini-FTA that Thailand has signed with a province in China at the end of August, and is one of the 14 key policies provided to the Ministry of Commerce.

            It was found that Hainan is a new special economic zone with opportunities in Thai health tourism because the Chinese government has announced the Hainan Free Trade Port policy to promote liberalization and facilitate trade and investment in the tourism industry, high-tech industries, and modern service industries, especially in the health and medical sectors.

           

           Boao City is a pilot zone for international medical tourism, known as “Hainan Boao Lecheng International Medical Tourism Pilot Zone,” focusing on cutting-edge medical technology, equipment, and pharmaceuticals, and is designated as a conference city and a center for medical technology. This has led to significant development in infrastructure and residential facilities, including hotels, restaurants, and golf courses.

            However, Boao City is still in its early stages and lacks a sufficient number of high-level medical facilities, medical equipment, technology, and management experience, necessitating healthcare institutions in Hainan to seek collaboration from various sectors. China has announced that medical institutions are limited to investment in the form of joint ventures or partnerships only, presenting an opportunity for Thailand to collaborate, as Thailand has over 64 hospitals nationwide that are equipped with experience and effective management, making it a prime opportunity for investment agreements in Hainan.

 

 

 

            Additionally, it was found that Thailand has opportunities in the health tourism service sector by expanding the wellness tourism market and health-related products and services through medical collaboration and cruise tourism, covering businesses such as medical treatment, cosmetic surgery, healthy food, restaurants, spas, and beauty products like cosmetics and Thai herbal products, which are popular among Chinese consumers.

            At the same time, there are opportunities to develop cooperation and promote investment in infrastructure in the tourism industry, such as expanding cooperation and developing yacht and cruise routes, and enhancing deep-sea ports to accommodate more cruise ships in line with the policy to promote Phuket as a marina hub to attract tourists and encourage investment, creating job opportunities for Thais seeking to work in the service sector in China.

            Hainan Province has announced recruitment for skilled professionals related to the new service industry, tourism, and advanced technology from around the world, and government agencies should expedite training for potential Thai workers on regulations, application procedures, travel for work, and labor rights and benefits.

“Hainan is becoming another province of interest for Thai businesses to invest in, whether in terms of importing goods for sale in duty-free shops, joint ventures, partnerships in tourism, or investments in the Special Health Care Zone, and Thai entrepreneurs should closely monitor the development of the Hainan Free Trade Port.”

 

            Although Hainan Island still has a relatively small economy, ranking 28th out of 31 administrative regions in China, it has shown an average growth rate of 11.06% per year from 2010 to 2019, particularly in duty-free retail, which grew significantly during the COVID-19 pandemic when Chinese citizens could not travel abroad. However, compared to Hong Kong, Hainan still lags in several areas, including transportation infrastructure such as ports and airports.

       The social, cultural, and economic diversity, as well as trade relations with major partner countries and its role as a significant exporter of financial goods and services, highlight the need for Hainan to develop further to become an important economic zone in China comparable to Hong Kong.

            Currently, Thailand is one of the top five countries leading health tourism in the Asia-Pacific region, alongside China, Japan, India, and Australia. Thailand has advantages in its beautiful location, diverse tourism resources, knowledgeable personnel, and cost-effectiveness compared to competitors.

Thailand also boasts rich cultural traditions and integrates health care practices with local wisdom, such as Thai massage, herbal spas, yoga, healthy food, and medical services.